Speculations around the market on LNM interest in Eregli Demir Celik

Speculations around the market on LNM interest in Eregli Demir Celik

Some market sources have been talking about the possibility of LNM Group controlling over 10% of the shares of Erdemir. As a matter of fact, about 47% of Erdemir's shares are publicly traded in Istanbul Stock Exchange (IMKB), and non-Turkish investors are holding almost 25% of the company's stock at his point of time. Moreover, Erdemir is included in the privatization plans of the Turkish Government for 2004. Despite the aforementioned speculations, there has been no official announcement on the issue by any of the parties involved. On the other hand, the LNM officials contacted by SteelOrbis, did not confirm the speculations, and the communications department had no comment to make. LNM Group has been very actively involved in privatizations and acquisitions of many steel plants around the world during the recent years. The Group includes LNM Holdings N.V. and Ispat International N.V., and is the world's second largest steel producer with integrated steel plants in 12 countries. The steel making interests of the group include Ispat Annaba in Algeria, Ispat Sidex in Romania, Ispat Nova Hut in Czech Republic, and Ispat Karmet in Kazakhstan, through LNM Holdings N.V. and facilities in the USA, Canada, Mexico, Trinidad & Tobago, Germany and France through Ispat International N.V. The group announced on September 1, that a draft agreement has been reached with the Polish Ministry of State Treasury, for the privatization of PHS (Polskie Huty Stali S.A.) in Poland. LNM Group has recently submitted a bid for the National Steel (NSC) in Philippines, as well.